Hey, just buy an EV. Problem solved! Am I right?
Well no, but you already knew that!
EVs are considerably more expensive than comparable gas vehicles, but there is always that $7,500 federal tax credit to blunt the pain. The problem there is that those lower income people who pay no income tax get zero tax relief on an EV purchase. They have no incentive to go electric.
If, for example, someone pays $1,000 in tax, that is wiped out in the year the vehicle is purchased, but there are no refunds on the remaining $6,500 portion of the tax credit and that $6,500 can't be carried forward to future years.
The people lowest on the income ladder will get screwed the most by any EV mandates given the tax credit system as it exists today. And the ever generous US taxpayers have the honor of funding the tax credits for others, many of whom have no problem affording expensive EVs.
The good news is that Tesla no longer eligible for federal tax credits, so at lease we taxpayers no longer have to give bonus cash to people buying $100K+ Teslas.